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Asset Depletion Loans in Vallejo
Vallejo attracts retirees, business owners, and equity-rich buyers who don't fit W-2 molds. Asset depletion loans let you qualify based on what you have, not what you earn monthly.
With the Mare Island waterfront redevelopment and proximity to Napa, buyers often carry significant assets but irregular income. This loan type converts your bank and investment accounts into qualifying income.
Lenders divide your total liquid assets by 360 months to calculate qualifying income. A borrower with $720,000 in accessible accounts shows $2,000 monthly income for underwriting purposes.
You need at least 620 credit and 20-30% down depending on the lender. Cash reserves after closing matter more than job history or tax returns.
Only portfolio and non-QM lenders offer asset depletion programs. Fannie and Freddie don't touch them. You're working with specialty lenders who price for flexibility.
Rates run 1-2% higher than conventional loans because these sit on lender balance sheets. Expect 7.5-9% in current markets depending on your credit and down payment strength.
Most Vallejo buyers using asset depletion have $500K-$2M across retirement and brokerage accounts. They're buying $400K-$700K homes but can't document income traditionally.
The mistake is draining accounts for a larger down payment. Keep 12-18 months reserves after closing. Lenders want to see the asset cushion stays intact post-purchase.
Bank statement loans work better if you have business income but want lower rates. Asset depletion makes sense when your income is genuinely zero or minimal on paper.
Foreign national loans require different structures. DSCR loans apply to investment properties only. Asset depletion fits primary residences when you're asset-rich but income-light.
Vallejo's waterfront properties and Glen Cove areas attract buyers downsizing from Bay Area equity. They sold $1.5M Marin homes and carry cash but no active employment.
Solano County tax rates run lower than neighboring counties. That helps stretch asset-based income calculations since the monthly PITI payment stays more manageable on paper.
Checking, savings, money market, stocks, bonds, and accessible retirement accounts count. Lenders typically exclude 401(k)s unless you're 59.5 or older.
Some lenders allow it but DSCR loans usually work better for rentals. Asset depletion works best for primary residences and second homes.
With 25% down, you'd need roughly $600K-$800K in liquid assets to qualify comfortably. Lenders want strong reserves beyond the down payment.
No tax returns or pay stubs needed. Lenders verify assets through bank and brokerage statements only.
Most lenders want 620 minimum, but 680+ gets better rates. Your asset strength matters more than perfect credit history.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.